2 weeks Ago By Lee Jun-sung
Hyundai Steel reported an improvement of 26.8 billion won in operating profit compared to the previous quarter. On April 24, Hyundai Steel disclosed that it achieved consolidated revenue of 55.
635 trillion won, with an operating loss of 19 billion won and a net loss of 544 billion won for the first quarter of 2025. Hyundai Steel explained, "Despite a 0.9% decrease in revenue compared to the previous quarter due to delays in the recovery of the steel market and the impact of strikes, operating profit improved by 26.
8 billion won due to base effects from one-time costs at the end of the last quarter." The operating loss is attributed to a decline in product sales due to stagnant steel market conditions caused by weak demand in construction and other industries, as well as the impact of strikes. Additionally, Hyundai Steel mentioned, "Despite the sluggish market caused by decreased demand for steel products, we expect the global supply and demand situation for steel to improve due to upcoming economic stimulus measures in China and production cuts within the country.
" They particularly pointed out that in the domestic market, the imposition of anti-dumping duties would lead to a reduction in low-priced imported plates, and they anticipate a rebound in sales of rebar products as they enter the peak season, suggesting a gradual recovery in performance starting in the second quarter. Meanwhile, Hyundai Steel previously announced an investment in an electric arc furnace integrated steel mill in Louisiana, USA, at the end of March. This mill will have an annual production capacity of 2.
7 million tons and will include a Direct Reduced Iron (DRI) production facility, electric arc furnaces, casting, and rolling equipment. Hyundai Steel plans to use this development to secure future growth drivers. Aim to supply automotive steel plates for strategic models from global automakers, including Hyundai and Kia, the company will produce and supply products that meet its customers' needs for carbon-reducing materials.
Hyundai Steel views the U.S. steel market as a strategic market with high profitability.
Through the establishment of this local production base, they expect to achieve threefold benefits: expanding the sales of high-value-added automotive steel plates, responding to trade risks, and laying the groundwork for a carbon-reducing production system. "By producing carbon-reducing automotive steel plates at the U.S.
electric arc furnace that meet the quality standards of existing blast furnace products, we will reshape our product portfolio to focus on high-profit, high-value-added products and secure a stable revenue base to concentrate on improving profitability," said an official from Hyundai Steel..
